Since April 2012, the Malawigovernment under the leadership of President Banda has continued to focus on implementing tough but critical macroeconomic and structural reforms aimed at turning around the economy. The government initiated a series of measures aimed at accelerating the economic adjustment program that was approved by the IMF Board last July. The policy initiatives cover a broad range of areas: fiscal policy, revenue administration, public financial management, monetary policy and structural reforms. My authorities have taken a pro
anticipated in 2003/04 and such shortfalls occur regularly. Uncertainties about the amount and timing of resource flows arise in particular for flexible budget support, because donor conditionality can be stringent. If the Malawigovernment misses agreed reform targets, a political decision about the release of funds is required from the donor organization.
32. The share of flexible spending in the short term is fairly small . A large part of the expenditure program is determined by the implementation schedule of foreign financed projects, and the interest bill, wage
This Supplement Information focuses on recent developments regarding the Malawi government’s response to the recent fiscal scandal and on the implementation of two remaining prior actions. The IMF staff welcomes the continued progress in implementing remedial actions to address the recent fraud and actions by the authorities toward meeting the end-December 2013 quantitative targets. The IMF staff also welcomes the interim forensic audit report. Although it did not contain all the information sought by the IMF staff, it had enough to assure the IMF staff that the remedial measures being implemented by the authorities to strengthen system controls and financial management are in the right areas. Some risks remain. It will be important to cautiously implement the fiscal spending program to preserve buffers, lest the final audit reveal slightly larger fund misappropriation.
include a sizeable statistical discrepancy between above and below the line data. The coverage of
government for above the line data is considerably narrower than the information on financing
reported by RBM.
While tax revenue data are received in a timely fashion, it is not always possible to reconcile them
with deposits in the MalawiGovernment (MG) Account. This is a result of the way taxes are reported,
and timing differences between receipt of taxes and cleared funds being available for the
government. The finances and operations of the Malawi Revenue
This joint staff assessment evaluates the strengths and weaknesses of Malawi’s poverty reduction strategy (MPRS), and considers whether the PRSP provides a sound basis for concessional assistance from the World Bank and IMF, as well as for debt relief under the Enhanced Heavily Indebted Poor Countries (HIPC) Debt Initiative. The annual review of the MPRS highlighted the reduced allocation of budgetary resources to pro-poor activities and the slow progress made in implementing structural and sectoral policy measures, and assesses that the implementation of the MPRSP has been unsatisfactory.
This paper presents report on the Observance of Standards and Codes—Fiscal Transparency Module for Malawi. A number of improvements have been made to budget management in Malawi in recent years that are increasing the level of fiscal transparency. Notable examples include the development of a sophisticated budget classification system and the introduction of the Medium-Term Expenditure Framework (MTEF) budgeting process. However, the developments have not been applied consistently across the different areas of fiscal management, and there has been insufficient attention to data quality.
The Malawi Growth and Development Strategy II (MGDS-II) is a poverty reduction strategy for the period 2006–11, which is aimed at fulfilling Malawi’s future developmental aspiration—Vision 2020. The strategy identifies broad thematic areas and key priority areas to bring about sustained economic growth. A striking feature of this strategy is that the various governmental organizations, private sector, and general public are equal stakeholders. However, successful implementation of MGDS-II will largely depend on sound macroeconomic management and a stable political environment.